International Display Works Announces Record Fiscal 2006 Second Quarter Financial Results

International DisplayWorks, Inc. (IDW) (NASDAQ:IDWK), a
manufacturer and distributor of liquid crystal displays (LCDs),
modules and assemblies, today announced financial results for the
Company's second quarter of fiscal 2006 which ended on April 30, 2006.

   First Quarter Highlights:

   --  Total revenues were a record $27.2 million, representing a
        20.3 percent increase over the comparable quarter of FY05.

   --  This represents the IDW's 11th consecutive quarter of
        profitability.

   --  The Company expanded and strengthened the management team by
        adding industry veterans Mr. Dwight D. Boliek as VP of
        Materials and Steve Gerisch as VP of Sales.

   --  IDW successfully completed all factory qualifications for the
        Tier One cell phone customer.

   "We delivered another record quarter from a revenue perspective,
showing both sequential and year over year growth. We made two
significant additions to our management team by retaining Dwight
Boliek as VP of Materials and Steve Gerisch as VP of Sales. Both
Dwight and Steve bring substantial procurement and sales expertise
respectively, which we expect to benefit IDW as we implement
initiatives to better position the Company for further growth,"
commented Tom Lacey, Chairman and CEO.
   "Our sales pipeline remains solid and we believe the recent
progress with our Tier 1 OEM handset customer serves as a validation
of our state of the art manufacturing process, high yield output
capabilities and overall product quality which we believe will
collectively enable us to win additional business," Tom Lacey further
commented.

   Financial Results

   "During the second quarter, we experienced solid revenue growth,"
commented Joe Bedewi, the Company's Chief Financial Officer.
   The Company completed the second quarter with $61.4 million in
cash and liquid investments as a result of the recently completed
follow-on offering. During the quarter the Company used a portion of
these proceeds to reduce debt by $12.9 million on its existing credit
line.
   "Our recently completed follow-on offering significantly
strengthened our working capital position, which will enable us to
support our current production ramps and future growth. Looking
forward, our revenue guidance for the third fiscal quarter is $30 -
$36 million," Mr. Bedewi went on to state.

   Teleconference Information

   Management will discuss the results in a conference call today,
June 8, at 4:30 p.m. Eastern time. Interested parties should call
888-243-6208 if calling within the United States or 973-582-2869 if
calling internationally. There will be a playback available until June
15, 2006. To listen to the playback, please call 877-519-4471 if
calling within the United States or 973-341-3080 if calling
internationally. Please use pass code 7416604 for the replay. This
call is being web cast by ViaVid Broadcasting and can be accessed at
International DisplayWorks' website at www.idwk.com. The web cast may
also be accessed at ViaVid's website at www.viavid.net. The web cast
can be accessed until April 1, 2006 on either site.

   About International DisplayWorks

   International DisplayWorks, Inc. is a manufacturer and designer of
high quality liquid crystal displays, modules and assemblies for a
variety of customer needs including OEM applications. IDW operates
466,000 square feet of manufacturing facilities in the People's
Republic of China (PRC). Sales offices are located in US, Europe, Hong
Kong, Singapore, and China. Copies of IDW's 10-K and other documents
as filed with the SEC are available through a link on our web site:
www.idwk.com.

   NOTE: The foregoing is news relating to International
DisplayWorks, Inc. ("IDW") and contains forward-looking statements,
which are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements involve risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements. When
used in this release, the words "anticipate," "believe," "estimate,"
"expect" and similar expressions as they relate to IDW or its
management, including without limitation, IDW and its subsidiaries,
are intended to identify such forward-looking statements. IDW's actual
results, performance or achievements could differ materially from the
results expressed in, or implied by these forward-looking statements.
For more detailed information the reader is referred to IDW's 10-K and
other related documents filed with the Securities and Exchange
Commission. This does not constitute an offer to buy or sell
securities by the Company and is meant purely for informational
purposes.
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           INTERNATIONAL DISPLAYWORKS, INC. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS
                            (in thousands)

                                               ----------- -----------
                     ASSETS                     April 30,  October 31,
  ---------------------------------------------   2006        2005
                                                Unaudited    Audited
                                               ----------- -----------
Current assets:
 Cash and cash equivalents
  Cash and cash equivalents                      $ 11,053    $  8,875
  Cash in banks - restricted deposits                   -         383
                                                 ---------   ---------
    Total cash and cash equivalents                11,053       9,258
 Trading securities, at market                     50,311
 Accounts receivable, net of allowance for
  doubtful accounts of $5 and $36                  25,768      21,776
 Inventories                                       12,691       8,516
 Prepaid expense and other current assets           2,814       1,939
                                                 ---------   ---------
  Total current assets                            102,637      41,489
                                                 ---------   ---------
Other assets
 Deferred tax asset                                 1,218         262

Property, plant and equipment at cost, net         27,693      27,031
                                                 ---------   ---------
  Total assets                                   $131,548    $ 68,782
                                                 =========   =========

      LIABILITIES AND SHAREHOLDERS' EQUITY
  ---------------------------------------------
Current liabilities:
 Accounts payable                                $ 17,962    $ 13,928
 Accrued liabilities                                3,446       3,835
 Income taxes payable                                 257         163
 Line of credit                                         -      12,953
 Current portion of long term debt                  2,521       2,545
                                                 ---------   ---------
  Total current liabilities                        24,186      33,424

Long-term debt, net of current portion              1,496           5

                                                 ---------   ---------
  Total liabilities                                25,682      33,429
                                                 ---------   ---------

Commitments and contingencies

Shareholders' equity
 Preferred stock, par $0.001, 10,000,000 shares
  authorized, none issued                               -           -
 Common stock, par $0.001, 100,000,000 shares
  authorized 44,478,579 and 31,971,629  shares
  issued and outstanding at April 30, 2006 and
  October 31, 2005 respectively                        44          32
 Additional paid in capital                       135,057      67,424
 Accumulated deficit                              (30,189)    (32,812)
 Cumulative translation adjustment                    954         709
                                                 ---------   ---------
  Total shareholders' equity                      105,866      35,353
                                                 ---------   ---------
  Total liabilities and shareholders' equity     $131,548    $ 68,782
                                                 =========   =========



           INTERNATIONAL DISPLAYWORKS, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
            (in thousands, except Share and per share data)


                           For Six Months      For Three Months Ended
                       ----------------------- -----------------------
                        April 30,   April 30,   April 30,   April 30,
                          2006        2005        2006        2005
                        Unaudited   Unaudited   Unaudited   Unaudited
                       ----------- ----------- ----------- -----------

 Net sales                $50,763     $40,723     $27,241     $22,637
Cost of goods sold         42,292      32,960      22,972      18,517
                       ----------- ----------- ----------- -----------
 Gross profit               8,471       7,763       4,269       4,120
                       ----------- ----------- ----------- -----------

Operating expenses:
 General and
  administrative            4,817       3,695       2,395       1,777
 Selling, marketing
  and customer service      1,354       1,174         691         584
 Engineering, advanced
  design and production
  management                  579         251         295         169
                       ----------- ----------- ----------- -----------
   Total operating
    expenses                6,750       5,120       3,381       2,530
                       ----------- ----------- ----------- -----------

   Operating income         1,721       2,643         888       1,590
                       ----------- ----------- ----------- -----------

Other income (expense):
 Interest expense            (255)       (177)         79        (115)
 Investment income, net       399           -         399           -
 Other income                  21          22          13          (2)
                       ----------- ----------- ----------- -----------
   Total other expense        165        (155)        491        (117)
                       ----------- ----------- ----------- -----------


   Income before taxes      1,886       2,488       1,379       1,473
                       ----------- ----------- ----------- -----------

   Provision for
    income taxes             (737)          -         161           -
                       ----------- ----------- ----------- -----------

   Net income              $2,623      $2,488      $1,218      $1,473
                       =========== =========== =========== ===========


Basic and diluted
 income per common share
  Basic                     $0.07       $0.08       $0.03       $0.05
                       =========== =========== =========== ===========

  Diluted                   $0.07       $0.08       $0.03       $0.05
                       =========== =========== =========== ===========

Weighted average common 
 shares outstanding
  Basic                35,591,689  31,146,049  44,477,954  31,525,498
                       =========== =========== =========== ===========

  Diluted              36,969,771  32,131,389  45,856,036  32,510,838
                       =========== =========== =========== ===========
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